Fairpoint buys Moneyextra.com

Consumer debt consultant Fairpoint Group said trading in the first half of its financial year has been in line with expectations, with revenues and profits marginally ahead of last year. The company has acquired price comparison web site Moneyextra.com in a move that should increase non-IVA (individual voluntary arrangement) revenues to around one third of group turnover n an annualised basis before revenue synergies from the final quarter of the current financial year and beyond.The eventual purchase price is on success in the form of the profits generated in Moneyextra. The initial consideration is £1 with up to a further £1.0million of working capital being made available to Moneyextra in the current financial year to replace existing borrowings, fund integration activity and support revenue growth. Further earn-out consideration is payable to the vendors contingent on a multiple of 49% of the future earnings of the Moneyextra business. On completion the directors expect the ultimate consideration to be around £8m.